Facts: On April 10, 1915, counsel for Alejandro Ibarra filed a complaint with the Court of First Instance of Tarlac against Leopoldo Aveyro and Emiliano Pre, for the purpose of recovering from them jointly and severally the sum of P465 as principal, besides such additional sum as might be found owing in accordance with the penal clause of the contract, at the rate of P5 a day from the date of the maturity of the obligation, which was December 5, 1914, until its complete payment, together with the costs of the trial, inasmuch as, on November 30, 1914, the defendants by means of a promissory note subscribed by both of them, borrowed from the plaintiff the sum of P465 under promise to return it to him on December 4th following, with the understanding that in a contrary case they should be obliged to pay him P5 for each day of delinquency in the payment of the said principal. The defendants deny all the allegations of the complaint, and as a special defense set forth that on March 28, 1914, the defendant Leopoldo Aveyro sold to the plaintiff a piece of land with the right of repurchase, for the sum of P450; that subsequently, this defendant borrowed from the plaintiff the title deed of the land sold, for the purpose of selling the property to another person at a better price, and afterwards returned the deed to the plaintiff as he had been unsuccessful in making such attempted second sale; that on November 30 of the same year the defendant Aveyro, feeling sure that this time he would be able to sell his land to another, borrowed from the plaintiff for the third time said deed of the land, and that then the latter required Aveyro to execute in the plaintiff's favor a promissory note, with the security of a solvent surety, for the same sum for which this defendant had to sold the land to the plaintiff, and with the aforementioned penal clause, to be effective in case of delinquency in the payment of said amount should the defendant succeed in selling the property, and with the condition that, if the sale should not be made, the borrowed deed should be returned; that as the defendant was unable to sell the land, he tried to return the deed to his creditor, requiring of course the return of the promissory note he had given in security for the deed, but that the plaintiff refused to accept the deed and return the promissory note. The court rendered a judgment, on August 18, 1915, by ordering Leopoldo Aveyro and Emiliano Pre to pay to the plaintiff jointly and severally the sum of P465 with legal interest thereon from December 5, 1915, until its complete payment; and by holding that the penal clause for the payment of P5 for each day's delinquency in the payment of the principal debt is null and void because it is immoral, pursuant to article 1255 of the Civil Code and to other legal provisions.
Issue: Whether the plaintiff has a right to demand that the defendants pay the penalty specified in the obligation to pay P5 per day from December 5, 1914, until complete reimbursement of the outstanding principal for delinquency in the payment of said principal to the plaintiff.
Held: Notwithstanding the imprudence and temerity shown by the defendants by their execution of a ruinous engagement, assumed, as it appears, knowingly and voluntarily, morality, and justice cannot consent to and sanction a repugnant spoliation and an iniquitous deprivation of property, repulsive to the common sense of man; and therefore, as all acts performed against the provisions of law are null and void, and as the penal clause referred to, notwithstanding its being an ostensible violation of morals, was inserted in said promissory note, we must conclude that the contracting party favored by said penal clause totally lacks all right of action to enforce its fulfillment.
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